Mineral Deposits outlook improves

Shares in gold miner
Mineral Deposits
could regain some lustre after the company announced it planned to expand operations at its flagship mine Sabodala enabling it to double its planned capacity from 2 million tonnes a year to about 4 million tonnes.

Upon completion of the expanded operations, expected to be in mid-2011, it is expected gold output will increase to an average of approximately 200,000 ounces a year and the mine life of the existing Sabodala pit will be reduced from the current 11 years to seven years.

Estimated capital cost of the expansion is approximately $US80 million - comprising $US60 million (including contingency) for the processing plant and associated infrastructure and $US20 million for additional mining equipment.

Mineral Deposits shares were 4.23 per cent lower at 90.5¢ at 2.39pm on Wednesday.